MEMBER ESSENTIALS RACQ INSURANCE UPDATE
66 THE ROAD AHEAD APR/MAY 2010
ADAM NICOLAS
As RACQ resumes full
ownership of RACQ
Insurance, the strong
focus on customer
service will remain.
IT'S BUSINESS AS usual for RACQ Insurance's
valued customers, as RACQ resumes full ownership
of the insurer for the first time in 15 years.
Your Club founded RACQ Insurance in 1970 to
provide Queenslanders with a choice of insurance
cover options at competitive premiums, backed by
excellent customer service.
RACQ chief executive Ian Gillespie said the Club
was now negotiating to purchase the half-share
of the insurance company currently held by joint
venture partner Suncorp.
RACQ Insurance chief executive Bradley Heath said
the change in ownership would not affect the normal
operation of the insurance company.
He said RACQ Insurance had always focused on
customers, which was one reason why it had become
the number one motor insurer in Queensland.
"RACQ Insurance will remain focused on
customers and the provision of excellent service,'' Mr
Heath said.
"While the shareholding is changing, the purpose
and goals for RACQ Insurance will not change.
"We are Queensland-focussed and committed to
continuing to serve our customers to the highest
standards during the buy-back process and beyond."
Mr Gillespie said the joint venture arrangement,
where Suncorp was a shareholder, service provider
and competitor, was a complex model.
From 1995, the insurer operated as a joint venture
with GIO Holdings Pty Ltd (GIO). GIO was acquired by
AMP in 1999, and then Suncorp in 2001.
"Under the joint venture agreement, both partners
had a periodic option to sell their shareholding to the
other," Mr Gillespie said.
"Suncorp has exercised its option to sell its
shareholding as part of its strategy to simplify and
focus its business on its wholly owned insurance
brands.
"RACQ and Suncorp have worked effectively as
joint venture partners, but the Club understands
Suncorp's overall simplification strategy."
He said the Club looked forward to working
through the sale and purchase process with Suncorp
to achieve a mutually satisfactory conclusion.
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